The Belagavi City Corporation, which is making every effort to increase its source of revenue and prevent revenue leakage, has now taken steps to revise the rent of its commercial properties/shops.
There are 425 shops under the purview of the City Corporation including the shops that were built under the Smart City scheme. Most of these properties are located in the heart of the city. The rent of these shops is not more than 500 to 5000 per month. Although the business turnover has increased, the rent amount has not been revised. Where as private owners hiked rents and charging 25000 to 30,000 a month in the same areas.
As a result, the income was hit by up to 2 crore rupees per year. Now the corporation has woken up and is revising the rent of all the shops to increase its revenue and giving leases for 12 years through auction.
As per the terms, City corporation can revise the rent of its commercial outlets/shops every three years. As a result of negligence shown in revision, the corporation’s income has been affected so far.
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Out of 425 commercial properties/shops under its jurisdiction, the city Corporation has already increased the rent of 103 shops by 20% and distributed them through auction. The auction process for the remaining 254 shops has started. A deposit of Rs 2 lakh per store and a monthly rent of Rs 12,000 to 20,000 have been fixed depending on the location of businesses. However, the monthly rent of the shops is not crossing the mark of Rs 20,000 due to the fact that the buyers are not coming in the expected amount through the auction process.